Money managers under the microscope
News and views on the asset management industry from Reuters and elsewhere:
Cazenove to launch Diversity Income fund - Fund Strategy
IASB proposes improvement to hedge accounting - HedgeWeek
Interesting to see increased short interest in Kazakhmys.
This week we highlighted Cazenove hedge fund manager Tim Russell’s caution about the miner’s valuation and the consistency of its earnings.
According to Data Explorers, the short base has been rising steadily over the past three months to 0.9 pct from 0.1 pct.
Cazenove’s Tim Russell, one of the UK’s best-regarded fund managers, reckons cyclical stocks — the winners in 2009 – look expensive while defensives look cheap and says he may increase his bets.
He gives the examples of Kazakhmys and GlaxoSmithKline, which are both on roughly 10 times earnings. Whereas Glaxo has tended to report results ahead of forecasts in recent years, Kazakhmys has tended to disappoint, he says.
Even the best hedge fund managers can sometimes get things wrong when markets are so volatile.
In his latest letter to investors star manager Tim Russell, the head of pan-European equities at Cazenove who made 9.4 percent last year in one of the toughest equity markets in living memory, reported a 4% loss in February.
But one top hedge fund manager believes that equities could soon be heading for a very sharp rally.
Cazenove’s Neil Pegrum — whose fund made 9.4 percent last year while markets were plummeting — believes UK equities could soon be enjoying a “March 2003″ rally.